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Tue, 03 Mar 2015 22:35:23 +0000Joomla! 1.5 - Open Source Content Managementen-gbGulf Markets Sluggishhttp://www.amwalalghad.com/en/money-markets/arab-stocks/33580-gulf-markets-sluggish.html
http://www.amwalalghad.com/en/money-markets/arab-stocks/33580-gulf-markets-sluggish.html Saudi Arabia's main index climbed 0.4 percent as property stocks dominated trading and Makkah Construction and Development was the main support, jumping 4.8 percent. The company, which which uses a different fiscal calendar from most listed firms, is expected to post quarterly earnings this month.

Retailer United Electronics surged 7.6 percent. The company has proposed no cash dividend for the fourth quarter but plans to issue bonus shares.

Market players expect its sales to jump in the first quarter after King Salman ordered all government bodies to pay their staff two months' salary as a bonus at the end of January, boosting consumer spending power. Many state-linked companies paid similar bonuses.

Overall, trading activity remained low compared with the last few weeks as the kingdom's market regulator said it was investigating possible insider trading in shares of telecommunications operator Mobily relating to its shock 2014 earnings restatement.

Until the scope of any legal action by the regulator becomes clear, many investors may stay cautious.

UAE, EGYPT

Dubai's index fell 1.0 percent to 3,789 points. But the benchmark found support after moving below 3,800 points, the lower bound of the narrow range in which it had traded for the last two weeks.

Builder Arabtec dropped 2.9 percent after Egyptian newspaper Al Masry Al Youm reported there were still disagreements between the company and the Cairo authorities about Arabtec's giant $40 billion residential construction project in Egypt. Arabtec has repeatedly said in recent months that it will soon conclude a final agreement on the project, but one has not been announced.

Emaar Properties, which said on Sunday that its board would discuss the dividend for 2014 this week, edged up 0.3 percent.

Abu Dhabi's bourse edged down 0.4 percent as heavyweight telecommunications firm Etisalat lost just as much, having jumped 5.2 percent in the previous two sessions on fourth-quarter results and dividends.

Qatar's index inched up 0.04 percent and Barwa Real Estate was the main support, jumping 2.0 percent after it appointed Salman Mohamad al-Muhannad, previously CEO of QNB Capital, its group chief executive. The company had only had an acting group CEO since May 2014.

That was positive news for the Saudi stock market, but its main index inched down 0.1 percent as trading volume remained modest and shares of telecommunications operator Mobily remained suspended following another shock revision of its 2014 earnings on Wednesday.

The key petrochemical and banking sectors barely moved, while telecommunications were mixed after suffering a sell-off due to Mobily in the previous session.

Saudi Telecom, which as the largest player in the sector could benefit from Mobily's slump, gained 1.5 percent. Zain Saudi, the smallest mobile operator, fell 3.1 percent.

Al Rajhi Bank, which will pay a 0.75 riyal per share cash dividend next week, edged up 0.4 percent.

The latest Reuters survey of regional asset managers showed on Thursday that Middle East funds are increasingly positive towards Saudi Arabia as the kingdom prepares to open its bourse to direct foreign investment in coming months.

Fifty-three percent of respondents said they expected to increase their Saudi equity allocations in the next three months, while none intended to cut them.

Three analysts polled by Reuters had on average forecast Etisalat, the Gulf's second biggest telecommunications operator by market value, would make a quarterly profit of 2.43 billion dirhams.

But investors may be relieved about the limited impact so far from the troubles of Mobily, whhich is Etisalat's Saudi Arabian affiliate. Etisalat proposed a 0.35 dirham per share cash dividend for the second half of 2014, flat year-on-year, and a 10 percent bonus share issue.

At 12.05 dirhams, the stock closed just above a major chart barrier at 11.95-12.00 dirhams, its peaks in May and July 2014. A clean break - two straight daily closes - would point up to the March peak of 12.60 dirhams.

First Gulf Bank rose 1.1 percent after its executives said on Wednesday that they expected the bank to achieve loan growth of 9-11 percent in 2015.

Dana Gas jumped 2.2 percent after index compiler FTSE said it planned to increase the stock's weighting in its global index by 3 percent.

The weighting of Dubai's Arabtec will increase 11 percent and the stock gained 1.9 percent, outperforming the Dubai index, which slipped 0.1 percent.

Another index compiler, MSCI, is set to effectively double Arabtec's weighting in its emerging market index from March. VTB Capital has estimated the change could drive up to $12 million in passive fund inflows and up to $101 million of inflows by actively managed funds.

Qatar's market edged down 0.2 percent as lenders Qatar National Bank and Qatar Islamic Bank fell 1.3 and 1.6 percent respectively. Both banks have paid 2014 dividends this month, and some investors may be switching to other stocks - or other Gulf markets - until the next payout season.]]>

Brent crude oil steadied just above $60 a barrel on Friday as expectations for falling U.S. rig count numbers outweighed concerns about oversupply.

Oil's weakness earlier last week ended a rally across Gulf stock markets, prompting investors to book profits and stay on the sidelines.

On Sunday, the main Saudi stock index was flat with a roughly equal split between gainers and losers. Petrochemicals giant Saudi Basic Industries edged up 0.4 percent.

Mecca real estate developer Jabal Omar was the main support, jumping 4.5 percent. The company, which uses the Islamic calendar, reported a second consecutive profitable quarter this month after at least five years of losses.

Makkah Construction and Development, which has a 10.1 percent stake in Jabal Omar, jumped 3.2 percent.

Insurance companies also outperformed. The sector's index rose 0.5 percent and AXA Cooperative Insurance Co , which at the end of last week reported a 22.4 percent increase in 2014 net profit, surged its daily 10 percent limit.

Retailer United Electronics added 0.8 percent after the firm said it had launched a new store which would boost first-quarter sales.

QATAR, EGYPT

Markets in Dubai and Abu Dhabi edged down 0.5 percent each as most stocks declined in low-volume trade.

Qatar's index edged up 0.2 percent on the back of property firms Barwa Real Estate and Ezdan Holding , up 2.5 and 0.7 percent respectively.

Qatari newspaper The Peninsula on Saturday quoted Economy and Trade Minister Sheikh Ahmed bin Jassim al-Thani as saying Doha would spend $12.5 billion on housing and infrastructure in the run-up to the 2022 FIFA World Cup. Also, both companies have yet to announce 2014 dividends.

Brent crude fell more than 2 percent and traded near $61 per barrel by 1230 GMT, after surging over the past two weeks and prompting equity rallies across the Gulf.

Saudi Arabia's bourse, where petrochemicals are heavily weighted, had benefited the most from firmer oil. With year-to-date gains of 12.9 percent, the market has outperformed all other major bourses in the Middle East.

Mecca Property firm Jabal Omar pulled back 0.9 percent after surging 24 percent in the previous four sessions on strong financial results and news that the government was seeking to speed up the development of the Muslim holy city.

UAE, Egypt

Dubai's stock index slipped 0.3 percent as telecommunications operator du dropped 2.8 percent and was the main drag. The company plans to report its fourth-quarter results early on Thursday and the stock had surged 5.3 percent in the previous session.

Property developer DAMAC added 1.0 percent and was the most traded stock by value. The firm plans to issue bonus shares instead of a cash dividend for 2014, but has not yet announced an exact date for that.

Abu Dhabi edged up 0.3 percent. Aldar Properties , the most traded stock, climbed 1.5 percent to 2.68 dirhams after HSBC raised its rating of the stock to “overweight” from “neutral” and increased the price target to 3.90 dirhams from 3.80 dirhams.

Analysts expect the company's performance to improve in the fourth quarter and this year; Egypt introduced anti-dumping fees on all steel imports last October for a period of 200 days.

“The Chamber of Metallurgical Industries as well as the local producers are also bargaining to extend the protectionism policy beyond the designated timeframe,” Egypt's Prime brokerage said in a note. “This should support both selling prices and volumes.”]]>

Brent crude jumped 2.2 percent to $57.80 per barrel on Friday, posting its largest two-week gain in 17 years because of falling oil rig counts and violence in producer Libya. Saudi Arabia's stock index rose 1.8 percent to its highest close since Nov. 24 in heavy trade. Shares in Saudi Kayan Petrochemicals Co surged their daily 10 percent limit and its bigger affiliate Saudi Basic Industries (SABIC) jumped 3.0 percent. The kingdom's oil ministry has allocated more natural gas to Saudi Kayan for it to expand ethylene production at its petrochemical complex in Jubail, the company said on Sunday. As part of the same deal, SABIC will reduce the marketing fees it charges Saudi Kayan, which will save the company 280 million riyals ($74.6 million) this year and 600 million riyals a year once its projects are completed, it said. Saudi Arabian Mining Co (Ma'aden) surged 5.3 percent to 39.50 riyals after AlBilad Capital said it maintained the stock's fair value at 39.62 riyals. "Profitability indicators are expected to witness a significant improvement starting from this year with the launch of commercial production in many facilities," it said. In a sign that some money is flowing back into Saudi stocks from abroad after pulling out during the oil price plunge in December, the U.S. dollar/Saudi riyal spot rate dropped back to 3.7510 on Sunday, very close to its peg. The exchange rate had climbed in recent weeks as high as 3.7605 - its highest level since January 2010, when markets were in the grip of the global financial crisis - because of outflows from Saudi stocks.]]>

The statement by the exchange also named eight board members for the exchange including businessman Ali Bin Ahmed Al Kuwari, who will serve as a representative for listed companies. Other members of the eight will represent the QIA and other interests.

"Having the minister of economy as the chairman gives the exchange a higher profile and boosts its reputation, and it will be more attractive to investors," said an industry source.

"The board has more diversity now - it has members from different sectors which is always good for better decision- making," added the source, declining to be named as he was not authorised to speak to media.

The Qatar exchange has attracted increased amounts of foreign money since it was upgraded to emerging market status by global index compiler MSCI last May. Authorities have been working to improve liquidity with regulatory changes, such as easing ceilings on foreign ownership of stocks.]]>Yomnayasser@amwalalghad.com (Amwal Al Ghad English)ArabMon, 26 Jan 2015 08:18:03 +0000Gulf Markets slip again but Property buoys Egypt as Pound weakenshttp://www.amwalalghad.com/en/money-markets/arab-stocks/32458-gulf-markets-slip-again-but-property-buoys-egypt-as-pound-weakens.html
http://www.amwalalghad.com/en/money-markets/arab-stocks/32458-gulf-markets-slip-again-but-property-buoys-egypt-as-pound-weakens.htmlMost Gulf stock markets closed either flat or lower on Tuesday as oil prices remained volatile and local companies delivered no positive fourth-quarter earnings surprises.

Brent crude oil fell in early trade on Tuesday after the International Monetary Fund cut its forecast for global economic growth in 2015, implying lower demand for fuel.

However, the commodity's price rose above $49 per barrel later in the day, supporting Saudi Arabia's bourse which, unlike other Gulf markets, was still open.

Another stock in the sector, Etihad Etisalat (Mobily) , fell 3.6 percent while the third major local operator, Zain Saudi, was flat.

National Industrialisation Co (Tasnee) dropped 2.5 percent after it said fourth-quarter net profit dropped 46.5 percent on lower petrochemical prices. The company made 160.7 million riyals, while analysts at Saudi Fransi Capital had expected 295.0 million riyals.

UAE, EGYPT

Most other Gulf markets pulled back. Dubai's index slipped 0.4 percent as most stocks declined. However, low-cost carrier Air Arabia, which stands to benefit from cheaper oil, gained 1.8 percent.

Logistics firm Aramex, which could also see its fuel costs go down, added 1.0 percent.

Egypt's bourse jumped 2.1 percent, largely on the back of property stocks such as Talaat Moustafa Holding , which added 2.4 percent, and Palm Hills Development , up 3.2 percent.

Egypt's central bank started allowing some depreciation of the pound this week, a move which analysts said aimed to stamp out a thriving black currency market as inflation concerns eased following the slump in oil prices.

"Conventionally under such situations, real estate stocks should continue performing well, as investors would look to buffer their risks by investing in land and property," Cairo-based Naeem brokerage said in a note.

The MENA M&A market depicted strong activity during 4Q2014, prolonging its steady performance of the last 2 years. The sustainable economic growth profile, driven by the large fiscal safety net, by the ongoing diversification away from hydrocarbons and by the progressive resurgence of key Arab Spring countries, is increasingly enlarging the depth and outlook for new deals in the region.

While the total number of completed deals has been stabilizing at the low-end of its range since 2009, the announced value of M&As reached $50 billion and $41 billion respectively during 2013 and 2014, ahead of an average of $34 billion during the previous 3 years. Such trend is reinstating the large deal sizes witnessed during the pre-2008 years, although the gap remains large to bridge.

From a geographic perspective, deal activity remains driven by a strong performance in GCC coupled with an ongoing pick-up in selected Arab Spring countries like Egypt and Morocco. The GCC accounts for the bulk of the deals, with 44% and 43% respectively of the announced value and the volume of completed deals during 2014. This is compared to 69% and 43% respectively during 2013, in an indication of larger deals being closed outside GCC.

Lisa Wright, Zephyr director said: “After a disappointing performance in Q3 2014, the last three months of the year represent a marked improvement for the MENA region as aggregate deal value climbed significantly. In all there were 137 deals worth an aggregate USD 8,977 million closed in the MENA region in Q4 2014. However, around 45 per cent of this is attributable to a single high value deal, namely Fonds National d’Investissement’s USD 4,000 million acquisition of Orascom Telecom Algerie, which completed in December. As is often the case, a large value transaction can transform a good quarter to an excellent one.”

Cyclical sectors continued to be a major focus for the acquirers. During 2014, sectors like banks, construction and service companies accounted for a substantial share of the regional completed M&As, prolonging the previous years’ trend.

Minority deals accounted for most of the number of the regional deals during 2014, sustaining their lead over the past years relative to majority deals. This is in line with the general perception that regional investors are less reluctant to give up control of their business.

Foreign acquirers have been one major component in the MENA M&As. During 2014, they have accounted for 54% of the number of completed deals, compared to 51% during 2013, slightly below the average of 57% witnessed during 2009 and 2010. These numbers reflect a confidence of global players in a large number of regional economies and their long-term fundamentals. In return, it offers some interesting exit options for local investors.

]]>Yomnayasser@amwalalghad.com (Amwal Al Ghad English)ArabMon, 19 Jan 2015 09:38:23 +0000Gulf Markets Soft After Oil Slipshttp://www.amwalalghad.com/en/money-markets/arab-stocks/32107-gulf-markets-soft-after-oil-slips.html
http://www.amwalalghad.com/en/money-markets/arab-stocks/32107-gulf-markets-soft-after-oil-slips.htmlMost Gulf stock markets fell on Sunday after Brent crude oil closed down nearly a dollar a barrel at $56.42 on Friday and many investors remained absent from the markets for extended holiday breaks. Although markets have become less prone to panic sell-offs since Saudi Arabia announced late last month a 2015 state budget which maintains spending at a high level, many buyers may choose to stay on the sidelines until oil prices find a floor.

Saudi Arabia's main equities index edged down 0.6 percent with most sectors in the red. The kingdom's market is heavily weighted towards petrochemical producers, whose profits may be hurt if oil's weakness is prolonged.

However, shares in Advanced Petrochemical Co bucked the trend and rose 1.2 percent after the firm said its 2014 net profit rose 34.9 percent on higher sales volumes and prices as well as cheaper feedstock.

The company was the first one in Saudi Arabia and the Gulf to report full-year results. More positive results could buoy regional markets in coming weeks.

"Despite falling oil prices, the outlook for Tadawul (Saudi Arabia's bourse) is still positive as corporate earnings remain healthy," National Commercial Bank said in a note on Friday, adding that December sell-offs had made valuations attractive.]]>ahmed.atef@amwalalghad.com (Amwal Al Ghad English)ArabMon, 05 Jan 2015 07:28:15 +0000